The global presence of Bitcoin ATMs is on the rise, with a notable 6% increase projected for 2024, reflecting the cryptocurrency’s growing mainstream acceptance.
The number of Bitcoin ATMs continues to surge, simplifying the process of buying and selling cryptocurrencies for users. This trend highlights the convenience these machines offer, similar to traditional ATMs, by allowing cash deposits directly into crypto wallets.
Bitcoin ATMs function similarly to regular ATMs but are tailored to cryptocurrencies. Users can purchase Bitcoin (BTC) and occasionally other tokens using cash or bank cards, with some machines also enabling the sale of crypto for cash, albeit with higher transaction fees.
The first Bitcoin ATM was launched in Vancouver, Canada, in 2013, marking a significant milestone in making cryptocurrency more accessible. Since then, the number of Bitcoin ATMs has rapidly expanded, with over 37,500 machines installed across more than 70 countries. Recent data indicates that 2024 is set to be a landmark year, featuring a 6% rise in Bitcoin ATM numbers.
U.S. Dominates Bitcoin ATM Market
The United States remains the dominant force in the Bitcoin ATM market, commanding over 81% of the global share. As of January 13, the country had over 31,500 Bitcoin ATMs, an increase of more than 1,000 machines since the beginning of 2024. The global count reached 38,768 after recovering from a decline in mid-2023 when the total dropped to around 33,000.
Europe, while a smaller player, is witnessing a steady increase in Bitcoin ATM installations. In 2024, the region welcomed 116 new machines, reflecting a 7.5% growth from the previous year. This consistent expansion is notable, especially as many areas experienced downturns during the cryptocurrency market’s challenges.
Most of the growth in Bitcoin ATMs occurred in the first half of 2024. By late April, the installations reached 1,942 new machines globally, translating to an average of 485 additions per month. However, growth decelerated in the latter half of the year, with only 34 machines added monthly between May and December, despite Bitcoin reaching new all-time highs in November, nearing $100,000.
Regulatory Landscape for Bitcoin ATMs
Bitcoin ATMs are legal in numerous regions, with regulations varying significantly. In the United States, they are overseen by the Financial Crimes Enforcement Network, requiring operators to register as money services businesses and adhere to anti-money laundering (AML) and know your customer (KYC) regulations for larger transactions. State-level regulations typically necessitate a money transmitter license and compliance with consumer protection laws, including fee transparency and data security standards.
Globally, the regulatory environment for Bitcoin ATMs differs by country, with increased scrutiny in the U.K. Recent headlines highlighted a case in September 2024, where an individual pled guilty to multiple offenses related to operating an illegal network of crypto ATMs in the U.K.
Additionally, in August 2024, authorities in Germany confiscated 13 crypto ATMs and seized nearly $28 million in cash from various locations, targeting machines lacking the necessary licenses and addressing concerns about potential money laundering activities.
Rising Concerns Over Bitcoin ATM Scams
Despite the legitimacy of most Bitcoin ATMs, there are increasing worries regarding their potential misuse for fraud and money laundering. Recent data from the Federal Trade Commission (FTC) reveals a substantial rise in reported consumer losses due to Bitcoin ATM-related scams, with losses soaring to over $110 million in 2023, a nearly tenfold increase since 2020.
In the first half of 2024 alone, fraud losses linked to Bitcoin ATMs exceeded $65 million, with individuals aged 60 and older being more than three times as likely to fall victim to these scams compared to younger demographics. The median loss across all age groups reached a staggering $10,000, primarily driven by scams involving government impersonation, business impersonation, and tech support fraud, according to the FTC’s findings.
